Current Affairs - Banking

HDFC Bank has opened its first branch in Singapore, marking its expansion in international operations after receiving a wholesale banking license from the Monetary Authority of Singapore. The branch was inaugurated by Rakesh Singh, Group Head of International Banking. With this addition, HDFC Bank now operates five international branches, including those in Hong Kong, Bahrain, and Dubai, and an IFSC Banking Unit in Gujarat International Finance Tech City (GIFT City). The new branch will further strengthen the bank's global presence and enhance its international banking services.

The Bank of Baroda has launched the 'Bob Utsav Deposit Scheme', a limited-period 400-day term deposit offering competitive interest rates to various depositor categories. The scheme provides interest rates ranging from 7.30% for general citizens to 7.90% for super senior citizens. Additionally, the Bank of Baroda has increased interest rates on term deposits for select tenors, including a 30 basis points increase for the 3-5-year bucket. This move aims to capitalize on the current interest rate cycle, providing attractive savings options for customers during the festive season.

The partnership between the International Finance Corporation (IFC) and Axis Bank resulted in a historic $500 million blue loan, representing India's first blue finance initiative. This loan is dedicated to supporting sustainable projects such as water management, marine ecosystem restoration, and green infrastructure development. As a significant climate finance initiative, it highlights the growing importance of blue loans in addressing environmental challenges and promoting sustainable growth in India. Axis Bank's commitment to sustainable lending underlines its role in fostering climate resilience through financial innovation.

The Life Insurance Corporation of India (LIC) has increased its stake in the Bank of Maharashtra from 4.05% to 7.10% by allotting 25.96 crore equity shares at ₹57.36 each through a Qualified Institutional Placement (QIP). This strategic investment indicates LIC’s confidence in the bank's growth potential and aims to bolster its balance sheet for future expansion plans. The increase in shareholding surpasses 5%, demonstrating LIC's commitment to supporting the public sector bank. This move aligns with LIC's overall investment strategy amidst its recent adjustments in other holdings.

The State Bank of India (SBI) has partnered with Singapore Airlines to introduce the KrisFlyer SBI Card, a co-branded credit card designed for frequent travellers. The card is available in two variants: KrisFlyer SBI Card and KrisFlyer SBI Card Apex. Cardholders can earn KrisFlyer miles, with the base variant offering 3,000 miles and the Apex variant offering 10,000 miles. The partnership aims to provide customers with rewarding travel experiences and enhanced benefits. This collaboration strengthens SBI's presence in the Indian credit card market and expands its portfolio of co-branded offerings.